Operations

Safeguarding the environment is nothing new to John Deere. We know that responsible resource management is vital not just to our company, employees, and customers, but also to our world. Every one of our operating processes reflects this strong commitment to environmental protection. We're constantly on the lookout for energy-efficient systems, as well as systems that sustain air and water quality or reduce or eliminate waste. And when investing in new products, approaches, or technologies, we give preference to those that have the least environmental impact.

John Deere strives to reduce the environmental impact of our operations and products. Each manufacturing location incorporates environmental impacts and risks into management decisions and has an active environmental management system in place.

Reduction of Environmental Impact and Risk

John Deere is committed to serving those who are linked to the land—those who cultivate and harvest, transform and enrich the land. Because of this commitment, we strive to reduce our environmental impacts. Each manufacturing facility reviews environmental risks and associated impacts annually. We set goals to reduce our environmental impact annually based on the reviewed risks.

Energy and Greenhouse Gases

We are focused on energy efficiency and greenhouse gas (GHG) emission reduction. This is nothing new at John Deere. We have documentation of facility energy-efficiency awareness programs extending back to 1932. Our environmental programs make good business sense.

In 1972, John Deere initiated its formal energy-efficiency program. Then in 2003, we added a worldwide GHG inventory program.

The results: between 1972 and 2006, our energy conservation programs reduced John Deere's total worldwide greenhouse gas emissions by 63% per ton of production. To further reduce GHG emissions from our operations and identify cost-effective energy-saving opportunities, John Deere joined the U.S. Environmental Protection Agency's Climate Leaders program in 2007. Under this program, we established a goal to reduce the company's global GHG emissions by 25% per dollar of adjusted revenue from 2005 through 2014.

With the introduction of our enterprise eco-efficiency goals in 2013 and the ending of the Climate Leaders program, we retired this goal two years early, having achieved a 17% reduction in GHG emissions per dollar of adjusted revenue. Over 40% of our facilities met or exceeded the goal two years early. Looking at this achievement in other ways, over the same time period of 2005 to 2012, we reduced GHG emissions 26% per ton of production and 41% per dollar of reported revenue while holding our absolute emissions relatively flat, with less than a .5% increase.

Water is important to us, and it is a key resource for our customers. We track and collect water usage data at all of our manufacturing locations. Standards and guidelines for constructing new manufacturing facilities encourage the inclusion of water-reduction technology in the initial project design.

Sustainable Facility Design

As we grow, we ensure we grow efficiently by incorporating into our facility design process a commitment to sustainable design with a focus on water reuse, energy efficiency, recycling, and waste elimination.

In 2013, we established our 2018 Enterprise Eco-Efficiency Goals governing how we use energy and water, how we manage our waste, and how we design our products. We're pleased to share these goals with you here.

We follow through on our commitment to sustainable practices and environmental stewardship by supporting environmental policies, vigilantly complying with applicable regulations wherever we do business, considering environmental impact in all our business planning, and fostering a culture of eliminating waste.

Environmental Management System: Our environmental policy is integrated into the company's worldwide operations through the John Deere Environmental Management System. This system includes a set of documented processes for controlling and continuously improving environmental performance based on the ISO 14001 standard. John Deere manufacturing facilities worldwide must follow this standard. A global network of regional environmental managers work with factories to ensure compliance with regulations and implement sustainable practices.

Assurance: Each year, all John Deere manufacturing and parts distribution facility managers provide formal documentation of their efforts to appropriately manage risks and safeguard employees and the environment. Formal audits are also conducted at manufacturing sites based on risk — internal audits at other sites — to verify compliance with the John Deere Environmental Management System standards and local legal requirements around the world. John Deere also records and analyzes environmental incidents to focus on continuous improvements in our environmental performance. To ensure proper disposal of waste materials, waste disposal suppliers must be approved prior to use.

For acquisitions, leases, and purchase of property, we take steps to identify and quantify any environmental risks and liabilities. A formal integration process ensures implementation of the John Deere Environmental Management System at acquired businesses and newly constructed factories.

To ensure that suppliers conduct business with a high degree of integrity and in a socially and environmentally responsible manner, all of John Deere's suppliers are expected to adhere to the Supplier Code of Conduct.

Environmental compliance is a key expectation of suppliers. They must ensure their operations comply with all laws related to air emissions, water discharges, toxic substances, and hazardous waste disposal. Deere suppliers are encouraged to conduct their operations in a way that minimizes the impact on natural resources and protects the environment, customers, and employees. We encourage our suppliers to participate in the Achieving Excellence program for suppliers, where their environmental sustainability efforts can be highlighted and recognized by John Deere.

Suppliers' products must comply with the John Deere Restricted Materials List. And they must maintain sufficient knowledge of input materials and components to ensure they were obtained from approved sources, in compliance with laws and regulations. Suppliers may be required to validate this origin.

John Deere proactively monitors suppliers to mitigate risks of a negative impact on human rights, health, or safety, as well as the environment, and we take measures to ensure that John Deere suppliers conduct business in a highly ethical manner.

A risk management tool is in place to monitor supplier risks for compliance, financial health, performance, and event and business continuity planning. The compliance portion of the tool monitors activity related to the supplier code of conduct, compliance to environmental and quality assessments, and all other compliance issues reported through other channels. This tool allows for improved risk management in the supply chain.

A new solar energy facility began operating in 2014 at John Deere Bruchsal Works, Bruchsal, Germany, and provides about 10 percent of the power required by the European Parts Distribution Center and the tractor cab factory.

The availability of water is a growing concern globally. Motores John Deere, located in Torréon, Mexico, identified an opportunity to use gray water (recycled wastewater) rather than rely on well water or city potable water.

John Deere North American Parts Distribution Center (NAPDC) in Milan, Illinois, is not only looking for opportunities to improve the facility's recycling program, but also for ways to support customers' recycling efforts.

The installation of solar panels is nothing new, but installing solar panels capable of meeting the hot water demands of a facility in Jiamusi, China, where temperatures can fall as low as -36 degrees centigrade is a serious challenge.